A Firm Requires an Investment of $30,000 and Borrows $10,000

question 38

Multiple Choice

A firm requires an investment of $30,000 and borrows $10,000 at 6%.If the tax rate is 30%,and the firm's WACC is 11.4%,what is the firm's cost of equity?

• A)15%
• B)14.1%
• C)5.4%
• D)17.4%
• E)15.6%

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Definitions:

Achievement of Goal

The successful accomplishment or attainment of a specified objective or target.

Task-Centered Model

A social work intervention model focusing on short-term tasks to bring about change, emphasizing the client's active role and problem resolution.

Incremental Action Steps

Small, manageable actions taken one at a time to gradually achieve a larger goal.

Solution-Focused

An approach focusing on finding solutions rather than dwelling on problems, emphasizing positive outcomes and pragmatic strategies.